Latest news with #GlobalTradeResearchInitiative
News18
9 hours ago
- Business
- News18
Modi's Namibia Visit Direct Counter To China's Grip On Critical Minerals
Last Updated: The visit was aimed at forming direct, resilient, and mutually beneficial supply chains that bypass traditional intermediaries and, more importantly, Chinese geopolitical leverage Prime Minister Narendra Modi's visit to Namibia had a definite purpose. Namibia is a country with a ton of critical rare earth mineral deposits, including uranium. That uranium is key to ensuring India's energy security. The other move at play is to break Chinese dominance of the rare earth minerals, which has been hurting Indian industries. China has been spooked by a plethora of corporations leaving its soil and settling in India under pressure from Washington, and especially Donald Trump's policies. As a result, China has been playing spoilsport and has restricted exports and controlled the supply of rare earth minerals to throttle Indian industries catering to the growing demand for production and manufacturing. Ahead of Prime Minister Narendra Modi's visit, India's High Commissioner to Namibia, Rahul Shrivastava, said that India is looking to import uranium from the African country and mentioned that the recent oil and gas discoveries in Namibia are also an area of interest for New Delhi. The PM's visit to Namibia was part of his first five-nation visit, which also included a triumph of India's agenda at BRICS, where Modi's call for collective action to prevent the 'monopolisation or weaponisation" of critical minerals set the tone for the visit to the African nation. The Anatomy of a Strategic Chokehold The necessity of this pushback cannot be overstated. China's dominance in the critical minerals sector is the outcome of a deliberate, long-term state strategy designed to create global dependency. The statistics show the nature of control. Beijing controls between 90 and 95% of the world's rare earth processing capacity and a staggering 90% of the global supply chain for rare earth permanent magnets. These components are indispensable to modern industry, powering everything from electric vehicles and wind turbines to advanced defence electronics. This near-monopoly of the rare earth minerals has been weaponised with increasing precision. Since mid-2023, Beijing has systematically imposed export controls on materials fundamental to India's high-tech manufacturing, beginning with gallium and germanium and later expanding to include graphite, directly impacting India's battery and clean energy sectors. The pressure has been over the top, with the Global Trade Research Initiative (GTRI) characterising these measures as a strategic wake-up call for New Delhi. In a particularly pointed example from June this year, Chinese battery manufacturer CATL reportedly directed Foxconn to withdraw all its Chinese engineers from a facility near Chennai, a move calculated to disrupt operations at a critical time for India's electronics supply chain expansion. This dependency inflicts direct economic pain. In fiscal year 2024, Indian industry imported around 460 tonnes of rare earth magnets, almost exclusively from China, a figure expected to surge towards 700 tonnes. This one-sided reliance is a primary driver of India's burgeoning trade deficit with China, which has swelled to USD 100 billion. For India's strategic sectors, this is not merely a trade imbalance; it is an externally controlled throttle on national ambition. Where Namibia Comes In It is within this high-stakes context that Namibia emerges as the linchpin of India's diversification strategy. The southern African nation is a repository of immense strategic wealth. As one of the world's top three uranium producers and possessing significant, largely untapped deposits of lithium, cobalt, and other rare earth elements, Namibia holds the keys to the very resources China has sought to control. The core objective of Modi's visit was therefore to establish direct, resilient, and mutually beneficial supply chains that bypass both traditional intermediaries and, more importantly, Chinese geopolitical leverage. A central agenda item was the revitalisation of a 2009 uranium supply agreement that has, until now, seen limited follow-through. With India's civilian nuclear programme expanding to meet growing energy demands, a secure and structured fuel supply from a reliable partner is a non-negotiable imperative. MEA Secretary Dammu Ravi noted that Namibia is being looked at as more than just a supplier. It is a result of the deeper strategic alignment that India wants to build with the African continent as a whole, where Africa's mineral wealth is viewed as integral to India's clean-tech goals. The discussions, therefore, focused on creating long-term bilateral frameworks for exploration, mining, and supply, backed by Indian investment. The engagement in Windhoek is the build-up of the same broader strategic vision. The Confederation of Indian Industry projects that Indian investments in Africa could reach $150 billion by 2030, signalling that the current mineral diplomacy is the beginning of a long-term, comprehensive partnership. The approach is rooted in capacity building and shared economic progress, which offers a compelling alternative to the models of engagement that have raised concerns across the continent, i.e., China's debt-trap diplomacy. A Diplomatic Counteroffensive Against Beijing India's strategy is being executed across multiple fronts, combining bilateral engagement with multilateral diplomacy. At the 17th BRICS Summit, Prime Minister Modi's call for collective action to prevent the 'monopolisation or weaponisation" of critical minerals signalled India's intention in Africa and globally. The message was an unambiguous admonition of China's actions, demonstrating India's willingness to challenge Beijing's behaviour even within forums where China is a dominant member. In parallel, India is diligently building alliances with other key powers. Its participation in the recently announced Quad Critical Minerals Initiative with the United States, Japan, and Australia is a complementary and crucial line of effort. This dual-track approach, advocating for fair-trade principles within groupings like BRICS while simultaneously building robust, alternative supply networks with strategic partners, shows an agile and sophisticated foreign policy with many levers to pull as required. It is a calculated manoeuvre to balance China's influence while reinforcing India's ambitions as a leader in the green economy. This entire diplomatic effort rests on a bedrock of historical goodwill. India was a steadfast champion of Namibian independence at the UN, and the SWAPO liberation movement's first foreign mission was established in New Delhi in 1986. This legacy of a partnership between equals provides a powerful contrast to other external powers. The fact that Chinese companies already hold majority ownership in two of Namibia's most productive radioactive element mines underscores the urgency of Modi's visit. It is a direct and timely countermove in a competition that is already well underway on African soil. The goal is clear: to ensure India's strategic autonomy is not compromised at the hands of a single, dominant power, in China or even the United States. About the Author Sohil Sinha Sohil Sinha is a Sub Editor at News18. He writes on foreign affairs, geopolitics along with domestic policy and infrastructure projects. tags : China Namibia Narendra Modi view comments Location : New Delhi, India, India First Published: July 10, 2025, 07:00 IST News opinion Modi's Namibia Visit Direct Counter To China's Grip On Critical Minerals Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
15 hours ago
- Business
- Time of India
India should keep buying Russian oil despite US pressure, says GTRI
India should stand firm on its decision to continue buying oil from Russia and reject pressure from the United States to cut those imports, economic think tank Global Trade Research Initiative (GTRI) said on Thursday. According to GTRI founder Ajay Srivastava , discounted Russian crude has played a key role in helping India keep inflation in check and maintain macroeconomic stability despite global turbulence. Explore courses from Top Institutes in Select a Course Category 'India must reject this pressure and stay firm on its Russia strategy. Buying discounted Russian oil has helped India manage inflation and maintain economic stability in a volatile global environment,' Srivastava said. His remarks come amid reports that former US President Donald Trump has threatened to impose a 100 percent tariff on countries that continue to purchase Russian oil. Srivastava cautioned that changing course under external pressure won't help. 'Altering that policy will not stop US threats and it will only invite more,' he said, noting that Trump has a pattern of issuing tariff threats for various reasons. Live Events 'Given this pattern, India sees no value in giving in to US pressure on Russian oil. It won't resolve the larger issue of future unpredictable US demands. Even a trade deal with Washington won't guarantee protection, as Trump could shift the goalposts later,' Srivastava added. GTRI's comments underscore a growing sentiment in Indian policy circles: that strategic autonomy in energy policy is non-negotiable, even amid shifting geopolitical equations. With inputs from PTI
&w=3840&q=100)
Business Standard
15 hours ago
- Business
- Business Standard
India should continue buying Russian oil; must reject US pressure: GTRI
Altering that policy will not stop US threats and it will only invite more, he said, adding this isn't an isolated demand, Trump regularly issues tariff threats for various reasons Press Trust of India New Delhi India should resist the US pressure to stop purchasing oil from Russia and continue buying the commodity from Moscow as it has helped India manage inflation and maintain economic stability in a volatile global environment, economic think tank GTRI said on Thursday. US President Donald Trump has threatened to impose a 100 per cent tariffs on Russian oil buyers. "India must reject this pressure and stay firm on its Russia strategy. Buying discounted Russian oil has helped India manage inflation and maintain economic stability in a volatile global environment," the Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. Altering that policy will not stop US threats and it will only invite more, he said, adding this isn't an isolated demand, Trump regularly issues tariff threats for various reasons. "Given this pattern, India sees no value in giving in to US pressure on Russian oil. It won't resolve the larger issue of future unpredictable US demands. Even a trade deal with Washington won't guarantee protection, as Trump could shift the goalposts later," Srivastava said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
India.com
a day ago
- Business
- India.com
India-US Trade Deal: Aug 1 Deadline Nears... Will The Deal Be Sealed In Time? Piyush Goyal Shares Major Update
New Delhi: A small group of Indian trade negotiators has landed in Washington this week. Their task is urgent. They must try, once again, to untangle the long-pending India-U.S. trade deal that has seen too many rounds, too many delays and now stares down a hard deadline, August 1. The clock is ticking. U.S. President Donald Trump, now in his second term at the White House, has already fired off tariff letters to a long list of countries. Japan, Brazil, South Korea, Thailand and Cambodia, each has received a note – explaining in clear terms why new tariffs are coming. India has not received one. That is only because New Delhi and Washington are still talking. But if there is no deal before the deadline, the letter could arrive. Where Are The Talks Stuck? Washington wants India to lower its tariffs on American agricultural and dairy goods. Milk, wheat, poultry and genetically modified soy, all are on the table. New Delhi, however, is not moving. India's position has been clear. Its farm sector, dairy cooperatives, food security architecture, they cannot take a hit. Union Minister for Commerce and Industry Piyush Goyal has said any agreement must benefit both sides. Agriculture Minister Shivraj Singh Chouhan has echoed that line. No pressure. No compromise on farmers. No backdoor trade-offs. So far, India has kept these sectors out of most trade deals, including with the United Kingdom and Australia. The same applies here. Indian Team Lands in Washington Led by Special Secretary Rajesh Agarwal, the Indian delegation is back in the U.S. capital, hoping to break the deadlock. The goal is to find a formula, something that can be signed off before Trump's August 1 deadline kicks in and the United States begins slapping tariffs across the board. Goyal says talks are moving 'at speed'. Speaking to reporters, he confirmed that the Indian side is focused on crafting an agreement that works for both countries. There is still time. Barely two weeks. But the message is that the window will not stay open for long. Trump's Tariff Playbook Trump is playing hardball again. Twenty-five countries have already been hit with his new tariff regime. Canada was slapped with 35 percent. Others have seen higher. But in India's case, the U.S. president has dropped a telling hint. While speaking about his global tariff strategy, he said that 'key trading partners' may see lower tariffs, around 15 to 20 percent. And not every country will get a formal letter. It is a signal that if India clinches the deal, it may escape the harshest penalties. Why India Won't Budge On Dairy & Agriculture Behind India's tough stance lies a deeper concern. According to a recent report from the Global Trade Research Initiative (GTRI), any wide-scale entry of subsidised U.S. dairy or poultry goods could damage India's rural economy. Not only small farmers but food security itself could be hit. The report warns against opening the gates to American grain or genetically modified soybeans. Once these products enter Indian markets, they could displace local produce and crush pricing structures. This is not only about trade margins, this is about the long-term sustainability of Indian agriculture. Can A Deal Still Happen? If all goes well in Washington, negotiators may stitch together a limited package. It will not be a full-blown foreign trade agreement (FTA). But it could be enough to avoid Trump's tariff stick. Enough to show progress. Enough to keep the trade lanes open. A senior official said that a breakthrough is still possible before August 1. But it depends on what each side is willing to give, and what each insists on keeping off the table. Until then, all eyes remain on the U.S. capital.
Time of India
a day ago
- Business
- Time of India
We have another deal coming up 'maybe' with India, says Trump
US President Donald Trump speaks during a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa in the Oval Office of the White House, Wednesday, July 16, 2025, in Washington. Donald Trump suggests a potential trade agreement with India. This statement occurred during a meeting with Bahrain's Crown Prince and Prime Minister at the White House. Trump mentioned the possibility of another deal with India. Discussions are underway, signaling a positive outlook for economic cooperation. This development could strengthen ties between the two nations. Further details are awaited. Tired of too many ads? Remove Ads India deal may mirror US-Indonesia template: Trump Tired of too many ads? Remove Ads Concerns over 'lopsided' trade framework Tired of too many ads? Remove Ads US President Donald Trump on Wednesday hinted at the announcement of a possible trade agreement with India, saying 'maybe' another deal was on the made the remarks during a bilateral meeting with the Crown Prince and Prime Minister of Bahrain at the White House."We have another deal coming up maybe with India," Trump was quoted as statement comes even as a fifth round of talks between Indian and US trade officials is underway in Washington, with the two sides working toward a proposed bilateral trade agreement (BTA).Earlier this week, Trump had indicated that the India pact may follow the contours of the recently finalised trade agreement with Indonesia. Under that deal, the Southeast Asian country will offer complete market access to US goods, while its own exports will face a 19% duty in the addition, Indonesia has committed to purchasing USD 15 billion in US energy, USD 4.5 billion in American agricultural products, and 50 Boeing to reporters, Trump added, 'India is basically working along that same line. We are going to have access into India. You have to understand, we had no access to any of these countries. Our people couldn't go in, and now we are getting access because of what we are doing with the tariffs…'The US has been pressing India to reduce duties on a range of products, including dairy, automobiles (especially electric vehicles), wines, apples, and genetically modified crops. In return, India is seeking duty relief on key export items like textiles, gems and jewellery, leather goods, chemicals, and experts have warned that any agreement modelled too closely on the Indonesia deal could harm India's domestic sectors. The Global Trade Research Initiative (GTRI) raised concerns over the lack of reciprocity in the proposed terms.'A bad deal, especially one that removes India's tariffs without reciprocal benefits, could be worse than no deal at all,' said GTRI founder Ajay Srivastava. He added that India must 'negotiate transparently, guard against one-sided outcomes, and not succumb to pressure for quick, symbolic agreements that compromise long-term economic interests.'India has so far resisted giving tariff concessions in sensitive sectors such as dairy, which it has never opened to any FTA partner. It is also pushing the US to remove or reduce the additional 26% tariffs it has imposed, along with duties on steel (50%) and autos (25%). Washington, in turn, has postponed the imposition of new tariffs on India until August two nations are targeting an interim agreement in the coming months, with the aim to finalise the first tranche of the BTA by September– trade between the two countries has remained robust, with India's merchandise exports to the US rising 21.78% to USD 17.25 billion in April-May this fiscal, while imports increased by 25.8% to USD 8.87 billion.
